TOYOTA

o Deepa Ram Suthar

o Arun Sharma

o Kalpesh Kumar Sharma

o Deepak Lamba

o Avinash Misra

• Toyota Motor Corporation is a

Japanese automotive manufacturer headquartered

in Toyota, Aichi, Japan.

• As of January 2014, is the fourteenth-largest

company in the world by revenue.

• Toyota was the largest automobile manufacturer in

2012 (by production).

• Toyota is the world's first automobile manufacturer

to produce more than 10 million vehicles per year.

• The company was founded by Kiichiro Toyoda in

1937 as a spinoff from his father's company Toyota

Industries to create automobiles.

• In 2013 the multinational corporation consisted of

333,498 employees worldwide.

History of Toyota auto Industry

• Established in 1937 out of Sakichi Toyoda’s weaving machine company

• Launched first car (SA Model) in 1947

• “Toyota Production System” formed in 1950 based on just in time principal

• First global expansion in 1959 at Brazil

• In July 2012, cumulative production >200M units

Founder & CEO

Founder

kiichiro Toyoda

Chairman

Takeshi Uchiyamada

•CEO

•President

Akio Toyoda

Business segments

• Automotive

• Design, manufacture and sales of passenger cars, recreational vehicles, SUVs and related parts

• Financial services

• Provisions of loans to car buyers and car deales

• Others

• Industrial vehicles (forklifts, etc.)

Toyota Total Sales By Region

Japan, 25%

Oceania, 3%

Asia, 11%

Middle East, 7%Africa, 4%

Europe, 14%

Latin America, 4%

North America, 32%

SALES

Toyota Visionary Management

Toyota’s Visionary Management concept can be

expressed using the metaphor of a tree. The roots of

the tree are the shared values

that underlie our spirit of monozukuri. The fruit of the

tree is our contributions to “always making better

cars” and “enriching the lives

of communities.” The trunk of the tree is a stable

business foundation that supports products that

please our customers. Henceforth,

we will conduct our business so as to achieve

continuous growth through a virtuous cycle

comprising these three elements.

Guiding Principles at Toyota• Honor the language and spirit of the law of every nation and undertake open

and fair business activities to be a good corporate citizen of the world.

• Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in their respective communities.

• Dedicate our business to providing clean and safe products and to enhancing the quality of life everywhere through all of our activities.

• Create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers worldwide.

• Foster a corporate culture that enhances both individual creativity and the value of teamwork, while honoring mutual trust and respect between labor and management.

• Pursue growth through harmony with the global community via innovative management.

• Work with business partners in research and manufacture to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships.

Five Main Principles of Toyoda

•Always be faithful to your duties, thereby contributing to the company and to the overall good.•Always be studious and creative, striving to stay ahead of the times.•Always be practical and avoid frivolousness.•Always strive to build a homelike atmosphere at work that is warm and friendly.•Always have respect for spiritual matters, and remember to be grateful at all times

Toyota Production System

• A production system which is steeped in the philosophy of "the complete elimination of all waste" imbuing all aspects of production in pursuit of the most efficient methods.

• TPS Concept

Jidoka

— Highlighting/visualization of problems —

-Quality must be built in during the manufacturing process!-

Just-in-Time

- Making only "what is needed, when it is needed, and in the amount needed!"

International Business Strategy

Four international business strategies have been worked out by Toyota:

• Global standardization strategy

• localization strategy

• transnational strategy

• International strategy

• Global standardization strategy:

Global standardization strategy focuses on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, leaning effect, and location economies.

• Localization strategy:

A localization strategy practitioner increases profitability by customizing the firm’s goods or services so they provide a good match to tests and preferences in different national markets.

• Transnational strategy:

a transnational strategy is aiming to simultaneously achieve low costs through location economies, economies of scale, and learning effects; differentiate their products offering across geographic markets to account for local differences; and foster a multidirectional flow of skills between different subsidiaries in the firm’s global network of operations.

• International strategy:

taking products first produced for their domestic market and selling them internationally with only minimal local customization.

Toyota’s objectives :

1. Business objectives:

• To maximize shareholder’s wealth and giving them returns on their capital invested.

• Effective working capital management

• Cost management

• Quality production

• Resources utilization (manpower, capital, assets and other)

• Public image in market (national and international)

• Overcome competition

2. Ethical objectives:

• No compromise in ethics

• True and fair presentations, comply with law and standards Maintain highest level of honesty, integrity, professionalism and ethical behaviours.

3. Cultural social and environmental objectives:

• See foreseeable future needs, company’s responsibilities as a manufacturer company and always take proactive steps that benefits customers as well as society.

• Proper waste management as a corporate social responsibility

• Protect whistle blowers and have regular meetings and review on social, cultural and environmental issues.

The Strategic plan for Toyota Company:

The Strategic plan for Toyota is to serve as guideline for conducting and coordinating development, research, marketing ,and all other business activities across the motor industry and for increasing the development of new and exciting efforts based on identification of region in the motor invention opportunity and challenges. Toyota follow the concept of strategy can be updated and changed anytime whenever it is in need of that. Strategy is not any fixed rule that any origination when establishes it can’t change.

TOYOTAA GOOD CORPORATE CITIZEN

TOYOTA’s CSR POLICY (2005)

• PURPOSE

• STANCE

• EMPLOYEE PARTICIPATION

• INFORMATION DISCLOSURE

• GLOBAL PERSPECTIVE

EnvironmentEstablishing a low carbon society

Establishing a recycling based society

Using Renewable Energy i.e. at Tsutsumi plant

1. Helping to Realize a Sustainable Society through Forestry Activities ‘Forest of Toyota’: A Model Forest to Vitalize Satoyam

2. Valuing Nature’s Wisdom, Expanding Environmental Programs `

Rooted in the Community ‘Toyota Shirakawa-Go Eco-Institute’

3. Human Development Program ‘Toyomori’ to Restore the relationship between city and mountainous villages.

Education

Toyota’s philosophy says “manufacturing begins with educating people.”

1. In Japan, ‘Toyota Children Meet Artists’ Program —A workshop-style class with artists, which helps children to discover the diverse ways of thinking and life.

2. In USA, Toyota Family Literacy Program’ Marks 20th Anniversary Contributing to the Development of U.S. Society

3. In Taiwan , Scholarships for the children of model drivers

4. In China, Toyota Study Assistance Fund’ Supports Chinese Students

5. In SA, Increasing Basic Academic Skills by ‘Toyota Teach’

Traffic Safety

Toyota promotes initiatives to improve traffic safety, viewing people, vehicles and the traffic environment as an integrated whole.

1. Toyota ‘Traffic Safety Campaigns’ Conducted Every Spring and Autumn in Concert with Japan’s National Traffic Safety Campaigns

2. ‘Toyota Driver Communication’ at ‘mobilitas’ Aims to Raise Awareness of Traffic Safety

3. Hands-on Traffic Safety Events, Held Wherever People Gather, Allowing Them to Understand

Effective Traffic Safety through Various Experiences

4. ‘Toyota Safety School Teaches’ Local Children about Traffic Safety

Society, Culture and moreToyota initiatives support various arts and cultural activities with the emphasis on “fostering culture,” “broadening horizons” and “revitalizing local cultures”.

In Japan,

1. “Kokoro Hakobu Project” Disaster Area Recovery Support during 2011 Tsunami.

2. ‘Toyota Community Concerts’ Contribute to Promotion of Regional Culture through

Music

3. ‘Toyota Choreography Award’ Discovers the Next Generation of Choreographers.

4. In Venezuela, From the ‘Pinta Tu Escuela’ Program to Building a New School

5. In Philippines, Providing Regular Medical Service in Impoverished Areas

6. In Vietnam, Natural Disaster Relief in Japan and Overseas

Motivational Practices in Toyota

1.Maslow’s Hierarchy of Needs

• All employees of Toyota are satisfied in lower level needs.

• The way Toyota promoted a strong team spirit and sense of

belonging is by showing no discrimination between team members

• Toyota also encourages its employees to try to solve challenging

problems to build up their confidence so that they can satisfy their

higher needs in esteem and self-actualization.

2.Goal Setting Theory

• Goal specificity: Toyota required goals must be clear and defined .

• Goal difficulty: One of the challenging goal found in Toyota is that managers even

challenged workers to find solution to make things one Yen cheaper.

• Goal acceptance: At Toyota, an “community of fate” ideology was developed.

• Performance feedback: If performance feedback is clear, employees are more

motivated. Toyota uses visual management systems .

STP segmentation, targeting and positioning

4Ps of TOYOTA

SWOT Analysis

Flower of services

Other Services

Marketing Strategies

MARKETING

• Toyota's marketing efforts focused on emphasizing the positive experiences of ownership and vehicle quality

The ownership experience has been targeted in slogans such as

• "You asked for it! You got it!" (1975–1979)

• "Oh, what a feeling!" (1979 – September 1985, in the US)

• "Who could ask for anything more?" (September 1985 – 1989)

• "I love what you do for me, Toyota!" (1989–1997)

• "Everyday" (1997–2001)"

• "Get the feeling!" (2001–2004)

• "Moving Forward" (2004–2012)

• "Let's Go Places" (2012–present)

LOGO & BRANDING

The logo made its debut on the 1989 Toyota Celsior

The three ovals in the new logo combine to form the letter "T", which stands for Toyota.

The overlapping of the two perpendicular ovals inside the larger oval represent the mutually beneficial relationship and trust between the “customer and the company”

The larger oval surrounding both of these inner ovals represents the "global expansion of Toyota's technology and unlimited potential for the future."

Toyota’s segmentation and target market is guided by its philosophy of

‘right car in the right place’:

It has segmented all the countries across the globe as its market

All of toyota's vehicles speak to a different consumer segmentation.

Based on income, gender, life cycle stages, needs/desires, etc.

Vehicles are designed so as to attract on the basis of lifestyle choices and specific

attitudes.

Toyota uses a psychographic and behavioral approach to segmenting the market

The prius:

• targets on conscious consumers who place an importance on the environment

• targets individuals that want to save at the gas pumps.

• targets individuals that care about safety, family, quality, etc.

The tundra:

• Targets on consumers interested in functionality and recreation.

The lexus:

• targets a more sophisticated, "classy" consumer, individuals interested in style, luxury, comfort, status etc.

• targets the middle aged consumer who care about family, safety, security, prestige....all wrapped up in a stylish bow.

Trucks:

• truck lovers or professional who need trucks

The manufacturer's suggested retail price (MSRP), list price or recommended retail price (RRP) of a

product is the price which the manufacturer recommends that the retailer sell the product.

70 different models sold under its name TOYOTA

• VANS: Sienna, Previa, Tarago, Estima

• TRUCKS: T100, Tacoma(4x2&4x4), Tundra CrewMax(4x2&4x4), Tundra Double Cap(4x2&4x4), Tundra Regular Cap(4x2&4x4)

• SEDANS: Avalon, Camry, Corolla, ECHO,

• SUVs: 4Runner, FJ Cruiser, Highlander, Highlander hybrid, Land cruiser, RAV4, Venza, etc.

• WAGONS: Prius plug-in, Prius V, Pruis C, etc.

• Tercel, Supra, Yaris, etc....

TOYOTA uses:

• show room,

• advertisement,

• free drive plan,

• special offer and exhibitions,

• after sales services,

• Toyota’s blog: (http://blog.toyota.com)

• TV programme,

• Websites (www.toyota-global.com)

as a means of promotional strategy.

SWOT AnalysisLocation of Factor TYPE OF FACTOR

Favorable Unfavorable

Internal Strengths

Strong financial performance

Brand image

Strong performance in Asia region

Research and development activities

Toyota production system

Weaknesses

The company recalled 9 million vehicles in 2009-2010 and

7.43 million cars in 2012

An increase in recalls not only results in losses but also

harms the brand image of the company

External Opportunities

Increasing demand for hybrid electric vehicles like prius

Opportunities in Asian market

New models like Toyota Aygo for youth

Threats

Economic slowdown

Competition in the global automotive market

Tightening emission standards

Appreciating Japanese Yen against US Dollar

Increase competitive strength through advanced technology:

Environmental technology (fuel consumption, emission, recoverability)

Hybrid vehicles and next generation fuel cells

Cost-reduction(discontinuation, integration of older models )

• Increased emphasis on financial services and information communication system

• Financial services:

Car loan and car leasing including Classic or Choices finance, operating leases,

Vantage leases, Driveway & Toyota Payment

Protection products including car insurance, vehicle warranties and servicing into

one easy monthly payment.

Payment Protection Insurance, a quick, easy and affordable way to make sure

you can keep up your payments in the event of an accident, illness or death.

• Continuous improvement.

• Customer Satisfaction.

• Quality Products.

• Unique Production System

• . Respect for people.

• segmentation, targeting, and positioning nurtured by its variety of offers and product attributes.

Financial Highlights of Toyota Motor Corporation

Production History

Revenue ¥22.064 trillion (FY 2013) [2]

Operating income ¥1.320 trillion (FY 2013) [2]

Profit ¥962.1 billion (FY 2013)[2]

Total assets US$ 377.281 billion (2013) [3]

US$ 372.928 billion (2012) [4]

Total equity ¥12.773 trillion (FY 2013

Consolidated Financial Highlights (U.S. GAAP – Generally Accepted Accounting Principles) *Fiscal

years ended March 31

Financial Highlights

Net Revenues Operating Income Net Income and ROE

(Return on Equity)

Capital Investment* and R&D

(Research & Development)

Expense

Vehicle Production Vehicle Production by Region

* Excluding vehicles and equipment

on operating leases

Vehicle Sales Vehicle Sales by Region

Securities code 7203 (Japan)

Number of shares issued 3,447,997,492 shares

Number of shareholders 628,902 shareholders

Fiscal year end March 31

Dividend payoutconfirmation date

March 31*When interim dividends are declared, the dividend payout confirmation date is September 30.

Number of shares per unit 100 shares

Transfer Agent Mitsubishi UFJ Trust Bank Limited

Stock listingsJapan: Tokyo, Nagoya, Osaka, Fukuoka, SapporoOverseas: New York, London

Corporate Stock Summary

Stock Overview

(As of March 31,

2013)

NamesNumber of shares held

(thousands of shares)

Japan Trustee Services Bank, Ltd. 328,913

Toyota Industries Corporation 218,515

The Master Trust Bank of Japan, Ltd. 185,036

State Street Bank and Trust Company 132,366

Nippon Life Insurance Company 129,455

The Bank of New York Mellon as Depositary Bank for Depositary Receipt Holders

82,399

Trust & Custody Services Bank, Ltd. 75,309

Mitsui Sumitomo Insurance Co, Ltd. 66,063

SSBT OD05 OMNIBUS ACCOUNT-TREATY CLIENTS

61,752

DENSO CORPORATION 58,903

Major Shareholders (Top 10 Largest Shareholders) (As of March 31, 2013)

Share Price Transition

Toyota's share price and trading volume on the Tokyo stock exchange

References

• Liker, J. K. (2004). The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer. Madision, Wisconsin, USA: McGraw-Hill.

• Bodek, N. (2008). Toyota managers know the road to Lean is by way of motivation.

• Besser, T. (1995, May). Rewards and Organizational Goal Achievement: A Case Study of Toyota Motor Manufacturing in Kentucky. Journal of Management Studies, 383-399

• A Brief Understanding of International Business Strategy --A Case Study of Toyota by Peter LIU

• http://www.toyota-global.com

Thank You…….